LAGOS (Reuters) &#8211; Nigeria’s long-awaited oil reform bill would privatise the Nigerian National Petroleum Company (NNPC), amend changes to deepwater royalties made late last year and scrap key regulatory agencies in favour of new bodies, a copy of the bill seen by Reuters showed.



President Muhammadu Buhari has sent the bill to the Senate, two sources told Reuters. It, along with the House of Representatives must sign off on it before it can become law. Nigeria is Africa’s largest crude exporter. [L5N2GJ6E7]



The legislation has been in the works for the past 20 years and looks to revise laws governing Nigeria’s oil and gas exploration not fully updated since the 1960s because of the contentious nature of any change to oil taxes, terms and revenue-sharing.







The bill proposes turning the NNPC into a limited liability corporation into which the ministers of finance and petroleum would transfer NNPC assets.



The government would then pay cash for shares of the company and it would operate as a commercial entity without access to state funds.



The changes would in theory make it easier for the struggling company to raise funds.



The legislation would also amend controversial changes to deep offshore royalties made late last year by cutting the royalty for offshore fields producing less than 15,000 barrels per day (bpd) to 7.5% from 10%.



It would also change a price-based royalty so that it kicked in when oil prices climbed above $50 per barrel, rather than $35.

rig-drilling-drilling-rig-oil

Nigeria would privatise NNPC, amend royalties under draft oil reform bill

LAGOS (Reuters) &#8211; Nigerian labour unions agreed with the government on Monday to suspend a planned strike over fuel and power price rises hours before businesses were due to grind to a halt, the labour minister and trade unions said.



The Nigerian Labour Congress (NLC), which represents millions of workers across most sectors of Africa’s biggest economy, including parts of the oil industry, last week announced its plans to embark on a general strike.



Nigeria cut costly subsidies in September to allow the petrol price to be determined by the market and increased the power tariff. President Muhammadu Buhari had said Nigeria could no longer afford the subsidies but the unions said a reversal of price hikes was needed to avert the strike.







The strike was due to begin on Monday but Labour and Employment Minister Festus Keyamo said in a statement, posted on Twitter, that an agreement was reached between the government and unions at 2:53 a.m. (0153 GMT). “Strike suspended,” he wrote.



He said the deregulation of petrol pump prices would remain in place and the government would roll out a financial support package for workers, and a joint committee comprising of government officials and labour union members would over a two-week period examine the justification for the electricity tariff policy.



A communique issued by the NLC and the Trade Union Congress (TUC) stated that the strike had been suspended and outlined the details outlined by Keyamo.







Africa’s top oil exporter has been under pressure from international lenders such as the World Bank to carry out reforms to qualify for budget support loans after the coronavirus pandemic triggered an oil price crash that slashed the government’s income.



Cheap fuel prices have long been seen by many in Nigeria as a benefit of living in an oil-producing country. Previous attempts to eliminate subsidies were scuppered due to social unrest.

shutterstock_306272309

Nigeria’s main unions suspend planned strike after government talks

BEIJING (Reuters) &#8211; China’s electric vehicle startups are on the charge again, thanks to Tesla.



The country’s growing fascination with the U.S. pioneer’s sleek designs and cutting-edge technology is giving a string of second-wave home-grown Tesla wannabes the traction to raise more funding, expand production and boost sales.



Chinese EV startups NIO, XPeng Inc, Li Auto and WM Motor have raised more than $8 billion between them this year and now rival Aiways is planning to go public, its co-founder and President Fu Qiang told Reuters.



Speaking ahead of the Beijing auto show which starts on Saturday, Fu said the relative success of U.S. initial public offerings (IPO) by XPeng and Li Auto had helped fuel the company’s ambitions to list.



Since it was founded in 2017 in Shanghai, Aiways has raised “no more than 10 billion yuan” and it will need to secure more funding from some private equity funds and other investors, said Fu, the former head of Volvo Cars China who has also been an executive at Mercedes-Benz, Skoda and FAW-Volkswagen.



“IPO is also in our plans, and we’re planning to push ahead with it,” Fu said, adding that Aiways would most likely be listed within China, declining to elaborate further.



China has been the world’s fastest-growing EV market for years helped by generous state purchase subsidies but the sales boom started to sputter last year as Beijing began cutting back financial support and watering down other pro-EV policies.



Some prominent Chinese EV startups such as Byton and Singulato have struggled and NIO’s future looked in doubt last year. But a surge in Tesla’s market value &#8211; and its sales in China &#8211; suggest the country’s EV dream is far from over.







“As Tesla stock goes, so goes the fate for electric vehicle startups,” said China auto expert Mike Dunne. “Funds are flowing like a river in spring again. Tesla could end up pulling everyone into the future sooner than expected.”



‘JUST OUT OF THE GATE’



Tesla’s sales in China in the first eight months of 2020 have nearly tripled from a year ago to 73,658 cars, according to consulting firm LMC Automotive, despite the disruption caused by the COVID-19 pandemic.



Some Chinese auto executives say cars made by the company from Palo Alto, California are achieving the status of Apple’s first iPhones in China and with so many potential technological advances still to come, that gives them hope.



Fu believes the revived interest in EVs in China is partly because EV owners are fascinated by intelligent driving functions, as well as the interactive, so-called connected services that many newer models are starting to come with.



“Today’s smart, connected cars aren’t that smart. We’re just out of the gate and are in a stage that could be described as iPhone 1 or the original iPhone,” Aiways President Fu said. “As that gets developed step-by-step, in the near future we will get to iPhone 8, iPhone 9 and iPhone 10.”



Dunne, too, said Tesla was the primary factor sustaining interest in EVs among consumers and investors in China, and elsewhere in the world. Tesla’s shares have surged 10-fold over the past 12 months and it became the world’s most valuable car company in July.Slideshow&nbsp;( 4 images )



And cheaper running costs are also a significant factor.



Cui Yihua, who sells aquariums in the eastern city of Suzhou, Jiangsu province, switched from his gas-guzzling Audi Q7 to save cash and chose an electric-blue Aiways U5 sports-utility vehicle (SUV) after also test-driving a Tesla Model 3, saying he liked the U5’s interior design, its colour and extra space.



“I have charging facilities in my housing compound, in the parking garage downstairs. I put a 100-yuan deposit down for charging and I’ve been using it for two weeks,” he said. “It’s negligible compared to gasoline-fueled cars.”



<h2 class="wp-block-heading">PRIVATE OWNERS</h2>



Automakers in China that were part of the initial wave of EV startups sold or leased many of their cars to drivers working for ride-hailing firm Didi Chuxing and rival taxi services who were spurred on by rebates and other policy support for EVs.



Now, Fu and NIO co-founder and Chief Executive William Li believe China’s EV marketplace is driven more by private car owners and their pure interest in electric cars.



That’s most evident in the performance of Tesla’s Model 3 sedan, which is perceived by many consumers as fairly affordable at about 270,000 yuan ($39,750) after purchase subsidies.







Credit also goes to Wuling, a General Motors Co joint venture, whose Hongguang Mini EV has become China’s best-selling electric car this year, in part because its cheapest model sells for just 28,800 yuan.



To be sure, some companies hit hard by the initial slowdown in EV sales are still in limbo. Byton has suspended its business for six months through January and is working on a restructuring of its operations, a spokeswoman said.



Singulato, meanwhile, is operating on a limited capacity and is looking for further funding to finish developing two cars and launch them, a senior company source told Reuters.



But executives say raising funds has become markedly easier this year, and their confidence levels are climbing too.



NIO, for example, has raised $3.8 billion this year to get back on track, mostly through state-affiliated funds in the eastern Chinese province of Anhui, and also with commercial paper and additional shares, its spokesman said.



WM Motor, backed by China’s most widely used internet search engine Baidu, raised $1.5 billion this week. XPeng Inc and Li Auto raised $1.5 billion and $1.1 billion respectively through U.S. listings in July and August.



‘DEMAND IS REALLY STRONG’







While sales of what China defines as new energy vehicles (NEV) &#8211; all-electric cars, plug-in electric hybrids and hydrogen fuel-cell vehicles &#8211; started to contract more than a year ago, they jumped 26% in August after a 19.3% rise in July, which ended 12 months of year-on-year declines.



LMC Automotive expects sales of passenger NEVs to fall 8.9% this year but surge 48.4% in 2021 to hit 1.52 million vehicles, or 7% of expected passenger car sales. LMC’s Shanghai-based analyst Alan Kang expects NEV sales to accelerate mainly because Beijing recently enacted tougher green-car quotas for carmakers.



Fu said sales of the Aiways U5, its first model, have gained momentum since April to surpass 1,400 in the three months through August, when it also unveiled its sportier SUV U6 ion.



Within a year, he thinks Aiways could reach sales of 10,000 cars in China, with another 3,000 from Europe, where it has started selling in Germany. It plans to expend into Belgium, Denmark, France, the Netherlands, Norway and Switzerland.



In NIO’s case, sales of its ES8 and ES6 models zoomed to 10,331 vehicles in the second quarter, half of its 2019 sales and almost matching sales of 11,348 for all of 2018, when only its seven-seater ES8 SUV was on offer.



NIO’s overall gross margin turned positive in the second quarter and hit 9.7% for vehicle sales. Operating losses shrank nearly 65% from a year earlier to 1.1 billion yuan.



“We think we have decisively overcome the difficulties of last year,” Chief Executive Li, who says he still flies economy to save the company money, told Reuters.



“Demand is really strong. If you place an order with us right now you will need to wait for a really long time to pick up your new car,” Li said. “Our main challenge in the fourth quarter is to improve our production capability.”

Billionaire Elon Musk: I am not Warren Buffett’s biggest fan

Billionaire Elon Musk: I am not Warren Buffett’s biggest fan. gettyimages-1155740300-594×594

African born Elon Musk’s Tesla, charges up Chinese startups.

(Reuters) &#8211; Tesla Inc&#8217;s&nbsp;<a href="https://www.reuters.com/companies/TSLA.O">TSLA.O</a>&nbsp;plan to produce lithium for electric vehicle batteries close to its Nevada Gigafactory faces stark challenges from the outset, including an onerous permitting process, uncertain access to water and questions about unproven methodologies.Slideshow&nbsp;( 2 images )



Chief Executive Officer Elon Musk told shareholders on Tuesday Tesla has secured rights to 10,000 acres in Nevada where it aims to produce lithium from clay deposits using a process developed internally.



The move would make Tesla the first company in the world to commercially produce the white metal from clay. Lithium is produced either from brine, commonly found in South America, or spodumene hard rock, usually in Australia.



In Nevada, Tesla plans to mix clay with table salt and then add water, which it says causes a reaction where the salt would leach out with lithium, which can then be extracted. The leftover clay would be put back in the earth to mitigate environmental damage.



“It’s a very sustainable way of obtaining lithium,” said Musk, who did not say where in Nevada the company had obtained the lithium rights or whether development has started.







The plan drew backlash almost immediately, with critics describing Musk’s plan as too simplistic and light on details. Returning rock to the earth after minerals are extracted, for instance, is already common industry practice through the use of tailings dams.



“This plan from Tesla brings up a lot more questions than it answers,” said Chris Berry, an independent lithium industry consultant. “Are we just supposed to take Elon Musk’s word for it that the cost will be lower than existing lithium projects?”



Palo Alto, Calif.-based Tesla did not immediately respond to a request for comment.



Nevada already has several lithium clay projects under development, including one from Lithium Americas Corp&nbsp;<a href="https://www.reuters.com/companies/LAC.TO">LAC.TO</a>&nbsp;that has been seeking federal permit approval for more than a decade and another from ioneer Ltd&nbsp;<a href="https://www.reuters.com/companies/INR.AX">INR.AX</a>.



RELATED COVERAGE<a href="https://www.reuters.com/article/us-tesla-battery-factbox/tesla-could-struggle-to-implement-some-of-its-battery-advances-experts-say-idUSKCN26E3J4"></a><a href="https://www.reuters.com/article/us-tesla-battery-factbox/tesla-could-struggle-to-implement-some-of-its-battery-advances-experts-say-idUSKCN26E3J4">Tesla could struggle to implement some of its battery advances, experts say</a>



Lithium Americas has said it is confident it can successfully extract lithium from clay through a process that involves acid leaching. Tesla said its process won’t involve acid, fueling further questions.



“If producing lithium in commercial amounts at battery quality grades from clay was feasible, why isn’t it already being done?” said Berry.



Any lithium project from Tesla would require an intensive application process for necessary permits that could stretch on for years.



&#8220;Mining lithium is very challenging,&#8221; said Pedro Palandrani of the Global X Lithium &amp; Battery Technology ETF&nbsp;<a href="https://www.reuters.com/companies/LIT.P">LIT.P</a>, which holds shares in Tesla and lithium producers. &#8220;If Tesla really wants to fly solo, we&#8217;re talking about four to five years to really see any kind of lithium production.&#8221;







Tesla’s plan also would likely require substantial amounts of water, forcing the company to battle with cattle ranchers for access to underground reservoirs in the arid state.



Albemarle Corp&nbsp;<a href="https://www.reuters.com/companies/ALB.N">ALB.N</a>&nbsp;operated the only existing U.S. lithium mine at a site roughly 200 miles (322 km) north of Las Vegas until it shut it down last month.



Operational since the late 1960s, the site produced less than 5,000 tonnes of lithium per year, a relatively small amount and far less than Tesla would need.

Elon Musk At SpaceX Headquarters

Tesla’s Nevada lithium plan faces stark obstacles on path to production

(Reuters) &#8211; Tesla Inc&nbsp;<a href="https://www.reuters.com/companies/TSLA.O">TSLA.O</a>&nbsp;CEO Elon Musk on Tuesday is scheduled to showcase the company&#8217;s advanced battery technology, with investors expecting he will outline how the company&#8217;s electric vehicles will surpass the cost and convenience of internal combustion engines.FILE PHOTO: Tesla Inc CEO Elon Musk speaks onstage during a delivery event for Tesla China-made Model 3 cars at its factory in Shanghai, China January 7, 2020. REUTERS/Aly Song



As automakers shift from horsepower to kilowatts to comply with stricter environmental regulations, investors are looking for evidence that Tesla can increase its lead in electrification technology over legacy automakers who generate most of their sales and profits from gasoline-powered vehicles.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-1155740300-594x594.jpg" alt="Billionaire Elon Musk: I am not Warren Buffett’s biggest fan" class="wp-image-351991" width="692" height="480" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-1155740300-594x594-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-1155740300-594x594-100x70.jpg 100w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-1155740300-594x594-218x150.jpg 218w" sizes="auto, (max-width: 692px) 100vw, 692px" /><figcaption>Billionaire Elon Musk: I am not Warren Buffett’s biggest fan (Photo by Charley Gallay/Getty Images for E3/Entertainment Software Association)</figcaption></figure>



Musk, who frequently launches new products in attention-grabbing, show-like announcements, has fueled expectations for Battery Day over the past months, in April calling the event “one of the most exciting days in Tesla’s history.”



On Monday, Musk said on Twitter that the battery improvements to be unveiled at the event would not reach “serious high-volume production” until 2022, sending Tesla shares down 5% in extended trade.







Analysts expect Tesla to present a range of updates, including significant improvements to the amount of energy its batteries can store, allowing vehicles to drive further on a single charge. They also await updates on the production cost of battery cells, largely seen as an impediment to wider electric vehicle adoption.



“We suspect there will be a plenty for everyone,” Canaccord analyst Jed Dorsheimer said in a Monday note.



Investors, for example, expect Musk to explain how Tesla will capitalize on its 2019 acquisition of U.S. battery company Maxwell Technologies Inc. Some investors expect the automaker to announce that Maxwell’s dry battery electrode technology could significantly reduce manufacturing costs, speed up production and improve batteries’ energy storage capacity.



RELATED COVERAGE<a href="https://www.reuters.com/article/us-tesla-batteryday-productivity/tesla-warns-on-challenges-of-scaling-up-production-idUSKCN26D1BN"></a><a href="https://www.reuters.com/article/us-tesla-batteryday-productivity/tesla-warns-on-challenges-of-scaling-up-production-idUSKCN26D1BN">Tesla warns on challenges of scaling up production</a>



Musk has complained in the past that Tesla vehicles are not affordable enough. Tesla’s lowest-range Model 3 sedan with a range of 250 miles (400 km) currently starts at $37,990 in the United States. Musk in July said scaling battery cell production at an affordable price was Tesla’s biggest limitation to growth.



Tesla’s futuristic Cybertruck, expected to be released in 2021, will have a maximum range of 500 miles, among the longest range of any electric vehicle on the market today.



While average electric vehicle prices have decreased in recent years thanks to changes in battery chemistry and composition, they are still more expensive than conventional cars, with the battery estimated to make up a quarter to a third of an electric vehicle’s cost.







Some researchers estimate that price parity, or the point at which electric vehicles are equal in value to internal combustion cars, is reached when battery packs cost $100 per kilowatt hour (kWh).



Tesla’s battery packs cost $156 per kWh in 2019, according to electric vehicle consulting firm Cairn Energy Research Advisors, which would put the cost of a 90-kWh pack at around $14,000.



Analysts at UBS expect Tesla to announce battery cell costs of $70 to $80 per kWh over the next three years, allowing the company to save roughly $2,300 per vehicle.



Such a price advantage would leave competitors unlikely to catch up to Tesla, the UBS analysts said.



Tesla currently produces batteries in partnership with Japan&#8217;s Panasonic Corp&nbsp;<a href="https://www.reuters.com/companies/6752.T">6752.T</a>&nbsp;at its $5 billion Nevada factory, while South Korea&#8217;s LG Chem&nbsp;<a href="https://www.reuters.com/companies/051910.KS">051910.KS</a>&nbsp;and China&#8217;s CATL&nbsp;<a href="https://www.reuters.com/companies/300750.SZ">300750.SZ</a>&nbsp;supply cells to its Shanghai factory.



Musk on Monday said Tesla intends to increase battery cell purchases from those three suppliers and possibly with other partners as well.



Tesla is also building its own cell manufacturing facility at its new factory in Germany and is setting up a battery research and manufacturing facility at its largest vehicle factory in Fremont, California.



Musk in July also said Tesla was open to license and supply powertrains and batteries to other automakers.

Elon Musk expected to use Tesla ‘Battery Day’ to argue for the end of combustion engines

NAIROBI (Reuters) &#8211; Kenya’s economy is expected to grow by less than 2.5% this year, the finance minister said, as more evidence of the economic damage caused by the health crisis emerges.



The projected growth rate will be a slide from 5.4% last year, Ukur Yatani told a virtual event to launch budget making for the 2021/22 financial year, battered by loss of jobs, a steep contraction in tourism and a drop in government revenues.



“The COVID-19 pandemic is likely to cause a major economic shock,” the minister said.



Thousands of workers have lost their jobs and some employees have had their hours reduced.



The tourism sector, which many households rely on for their livelihoods, is expected to contract by 18.7% this year and 9.1% next year, before it starts to grow slightly in 2022, the Treasury said.



The government’s revenue from taxes dropped by 10% in the year to August, or 120 billion shillings ($1.11 billion), the finance ministry said, partly due to tax cuts announced in April to support consumer demand in the face of pandemic.



The coronavirus crisis has also upended the government’s budget deficit reduction plans.



In the 2021/22 (July-June) financial year, the finance ministry said it will target a fiscal deficit of 7.3% of GDP, slightly down from this fiscal year’s deficit of 8.4%.



Pre-pandemic forecasts had put the fiscal deficit for this financial year at 4.9% of GDP, narrowing to 3.9% in 2021/22.



Kanini Kega, the chairman of parliament’s budget committee, warned officials against taking the budget plans lightly, normally in the form of additional requests for cash during a given financial year, after the budget has been approved.



“The huge variations and lack of predictability has eroded the credibility of our budget,” he said.

General Economy As Kenya Faces Bleak 2018 Outlook In Vote Aftermath

Kenyan economy to grow at under 2.5% this year -finance minister

BERLIN (Reuters) &#8211; Managers at electric carmaker Tesla Inc (<a href="https://www.reuters.com/companies/TSLA.O">TSLA.O</a>) on Thursday demonstrated new supercharger equipment on a Berlin research campus, saying they were looking at more target cities to attract potential buyers worried about access to charging.Tesla cars are seen at the V3 supercharger equipment during the presentation of the new charge system in the EUREF campus in Berlin, Germany September 10, 2020. REUTERS/Michele Tantussi



“Now, as part of our commitment to make Tesla ownership easy and convenient for everyone including those without immediate access to home or workplace charging, we are expanding out supercharging network into city centres,” said Jeroen van Tilburg, manager Europe of charging infrastructure at Tesla, the company owned by South African born Elon Musk.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="867" height="1024" src="https://www.cnbcafrica.com/wp-content/uploads/2020/03/GettyImages-1175368064-scaled-e1598630665469-867x1024.jpg" alt="" class="wp-image-361863" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/03/GettyImages-1175368064-scaled-e1598630665469-867x1024.jpg 867w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/GettyImages-1175368064-scaled-e1598630665469-254x300.jpg 254w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/GettyImages-1175368064-scaled-e1598630665469-1301x1536.jpg 1301w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/GettyImages-1175368064-scaled-e1598630665469-696x822.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/GettyImages-1175368064-scaled-e1598630665469-1068x1261.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/GettyImages-1175368064-scaled-e1598630665469-600x708.jpg 600w" sizes="auto, (max-width: 867px) 100vw, 867px" /><figcaption>SpaceX Chief Engineer Elon Musk speaks in front of Crew Dragon cleanroom at SpaceX Headquarters in Hawthorne, California on October 10, 2019. (Photo by Yichuan Cao/NurPhoto via Getty Images)</figcaption></figure>



A company spokesman told reporters Tesla would open at least one more inner-city fast charging site in Germany in 2020, possibly more.



He stressed that Tesla still believed in slow workplace and residential charging as the main way to charge vehicles but wanted to offer a quicker option.



The so-called V3 charger allows Tesla Model 3 cars to charge within five minutes enough to travel 120 kilometres (75 miles).



Older Tesla models would receive relevant software upgrades.



German policymakers aim to boost demand for electric cars to cut emissions.



“We have a lot to make up for in terms of charging infrastructure,” said Germany’s Economy Minister Peter Altmaier at the event.



He reiterated pledges to speed the roll-out of public charging points and permits for private charging which had hampered sales in the past.



Latest legislation for a green-led recovery after the coronavirus crisis offers buyers incentives and helps bump up power grids.



Tesla has chosen a site near Berlin for a new factory due to start operating next year.



Separately to the event, the Frankfurter Allgemeine Zeitung newspaper said on Thursday the factory had the potential to create 40,000 jobs, citing the economy minister of Brandenburg state.

How Elon Musk Took Tesla To Hell And Back With The Model 3

African born Elon Musk’s Tesla launches fast electric car charging in Berlin, says more cities to come

NAIROBI (Thomson Reuters Foundation) &#8211; A multibillion-dollar oil pipeline planned for East Africa could spell disaster for local communities, charities said on Thursday, warning of lost land and livelihoods unless oil firms listen up and change tack.



French energy giant Total and its partner China National Offshore Oil Corporation plan to exploit oil reserves in Lake Albert in Uganda and construct a 1,443-km (896-mile) pipeline to neighbouring Tanzania for export.



Human rights groups say the oil firms involved in the $3.5 billion East Africa Crude Oil Pipeline (EACOP) have failed to fully address concerns raised by many of the 12,000 families who are expected to lose land due to the project.



The families &#8211; most of whom farm and rear livestock for a living &#8211; say they fear&nbsp;unfair&nbsp;resettlement, low compensation and damage to their rich and diverse environment.



“Time and time again &#8230; we heard people talk about their land and their fears that they would not receive fair value for what they may lose,” said Joy Akoli Atine of Global Rights Alert, co-author of a study into the project by six charities.&nbsp;



“There was very limited understanding amongst affected communities about the land valuation and compensation process,” she told a virtual news conference.



“Total and its partners must take immediate steps to clear up any and all confusion and misunderstanding surrounding the land valuation and compensation process.”



Total said it had engaged with the charities on their reports and welcomed some of their findings,&nbsp;while disputing others &#8211; including allegations related to unfair compensation and a lack of engagement with locals.



“The project was designed with the overarching concern of minimising and mitigating the impacts on local communities and in particular the need to relocate households,” said a company statement.&nbsp;



“Compensation is proposed to meet full replacement value. Other accompanying measures such as provision of replacement housing and access to livelihood programs are planned once the project moves into the implementation phase.”



Total said it was making “considerable efforts” to engage residents in the face of project delays, adding that a grievance mechanism existed to ensure complaints were heard.&nbsp;



China National Offshore Oil Corporation did not immediately respond to a request for comment.



Commercial quantities of oil were discovered in the Lake Albert basin in western Uganda in 2006. Since then, the oil companies have been involved in exploration activities with construction of the pipeline expected to begin in May.



It will carry crude oil from Hoima in Uganda to the Chongoleani peninsula near Tanga port in Tanzania &#8211; making it the world’s longest electrically heated pipeline.



Charities say oil wells will be dug on the shore of Lake Albert, and in a number of natural reserves and protected areas, including the Murchison Falls National Park.&nbsp;



The pipeline will run beside Lake Victoria, Africa’s largest lake. It&nbsp;will be buried to minimise environmental impacts, with some facilities set above ground, designed to ensure minimal environmental and social impact, an EACOP statement said.&nbsp; &nbsp;

shutterstock_227423392

Communities ‘left out’ as oil pipeline project set to get underway in East Africa

(Reuters) &#8211; Tesla Inc shares fell for a third straight day on Thursday, as investors who have been betting on the electric-car maker’s growth prospects cashed in on the meteoric rally in the stock price this year.



Market analysts and traders called it a near-term profit-taking, triggered by the company’s plan to raise $5 billion from the market and the stake sale by the second largest shareholder Baillie Gifford, in a stock that has surged fivefold in 2020.



They expect it to be short-lived. “It’s just a poster child for the growth trade and there’s a bit of general rotation,” a London-based trader told Reuters.



Meanwhile, Edinburgh-based Baillie Gifford told Herald Scotland the investment firm remains a “strong supporter” of Tesla, but had to sell its passive stake due to norms that limit the weight of a stock in clients’ portfolios.



Gifford cut its stake to 4.25% compared to 7.67% as of Dec. 31, making it now the fourth largest stakeholder, according to Refinitiv data.



“I know Baillie Gifford were a kind of forced seller to stay within the mandates, but (an) evidence of core investor profit-taking as the company start a sell off of $5 billion stock,” the trader said.



Ever since Tesla surprised Wall Street by delivering on Chief Executive Elon Musk’s promise of a profit in its third quarter in October last year, its shares have risen nearly nine-fold.



The world’s most valuable carmaker has gone on to register three more profitable quarters, clearing a hurdle that could lead to its inclusion in the benchmark S&amp;P 500 index.



The index rebalances every quarter, but a stock can be added to the index at any point once a company becomes eligible for consideration.



Howard Silverblatt, senior index analyst at S&amp;P Dow Jones Indices, declined to comment on potential index membership changes.



The surge in shares during the COVID-19 pandemic have also led Tesla and Apple Inc to split their richly priced stock.



The iPhone maker’s shares, which have jumped more than 35% since it announced its split, fell for the second session, down 5.2%, while Tesla shares were down 6.5% in early trading on Thursday.

Tesla retreats for third day as investors cash in on gains

By Mthuli Ncube



In 2000, Zimbabwe embarked on an historic Land Reform Programme; the resettling of black families on land taken from their ancestors. It was an attempt to rectify horrific, historic, injustices.



Indeed, in the late 1990s, white Zimbabweans still accounted for less than 1% of the population, yet they owned 70% of the fertile arable land.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/Belarus-tractors-for-Zimbabwe.png" alt="" class="wp-image-379493" width="707" height="943" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/Belarus-tractors-for-Zimbabwe.png 477w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/Belarus-tractors-for-Zimbabwe-225x300.png 225w" sizes="auto, (max-width: 707px) 100vw, 707px" /><figcaption>Tractors from Belarus arrive in Zimbabwe as part of training for farmers. </figcaption></figure>



This was the context that the land reform process was based on.However, what was initially designed as a rectification of centuries of displacement and brutal colonialization became a policy riddled with much complexity. Upon becoming president, one of Emmerson Mnangagwa’s first acts was to constitute an Inter-Ministerial Compensation Committee in 2018. While the principle of indigenous land repossession was not to be reversed, the rule of law was to be respected, and compensation provided for improvements on the land.



On the 29th July 2020, Zimbabwe once again made history. A deal worth US$3.5 billion was signed between the government and white farmers. President Mnangagwa described it as a “new beginning of the land discourse in Zimbabwe.”



Andrew Pascoe, President of the Commercial Farmers Union, representing white farmers, called it “a huge milestone.”



In addition, on August 31, the government followed up by declaring that a number of foreign white farmers whose farms were seized, and are protected by international treaties can apply to get it back. 



Furthermore, if direct restitution proves to be impossible, the farmers will be offered land elsewhere.



So how did we arrive at this? And how is it to be implemented? Firstly, the entire agreement is based on two sections of the Zimbabwean constitution: Section 72(3) and Section 295 provide for the payment of compensation for improvements on “compulsorily acquired agricultural lands”. 



Whilst it has taken time, and indeed an entirely new dispensation, the Government and farmers’ representatives committed to engage in extensive negotiations on the basis of the law.



Finally, after much deliberation and debate, spirited conversations and emotional exchanges, a deal has been hammered out, and authorised by a referendum of the white farmers with a huge majority. The final agreement importantly included a global compensation figure which includes infrastructure and biological assets, and land clearing costs.



Many question where this money will come from. Zimbabwe is already weighed down by economic challenges.



Our economic plan, The Transitional Stabilization Plan, a broad swathe of deep and decisive economic reforms has already come up against cyclones, droughts and now a global pandemic. Funds therefore will be raised mostly in the capital markets through United States dollar denominated long term debt instruments, as well as other suitable non debt instruments and financing structures.



In order to see this through, a Joint Resource Mobilisation Committee has been set up by President Mnangagwa, which comprises both government officials and representatives of the farmers, and chaired by the Minister of Finance and Economic Development.This spirit of cooperation and compromise is at the heart of the new Zimbabwe.



Indeed, progress on land reform was not only a constitutional commitment, but a national necessity. Our international standing has been eroded over the last two decades, and this issue has often been at the core of those difficulties.



Since November 2017, the Ministry of Foreign Affairs and International Trade has been charting a new course for re-engagement, international cooperation and good faith. Zimbabwe has been reaching out to friends; old and new, with a clear and genuine message: Zimbabwe is back on the world stage, and we desire to be a respected and responsible member of the international community.



As President Mnangagwa noted in his inauguration speech in 2017, “While we cannot change the past, there is a lot we can do in the present and future to give our nation a different,positive direction.”



For a country to change direction, difficult but necessary decisions must be made. Whilst we will never give up on the plight of the great mass of land-deprived indigenous black Zimbabweans, we must be loyal to the constitution and respect property rights. With no property rights, there is no business community and there are no investments.



And for an economy to grow and for jobs to be created, we must get the basics right. Likewise, there can be no law and order without the rule of law. And there can be no rule of law without a respected constitution.



A just solution therefore was vital. We faced many challenges along the way. Some were bridged between the parties alone. Others required international assessors and arbitration.



The key terms include a global compensation figure with a 50% down-payment within 12 months of signing the agreement, and the full balance to be paid over a period of 48 months.



This is no mean feat and the Joint Resource Mobilisation Committee are developing a joint road map for implementation. In the meantime, the Government will continue to provide payment of interim relief payments in the National Budget until sufficient funds have been raised for the down-payments. Work is underway with roadshows to potential financiers being lined up and strategies for resource mobilisation and stakeholder engagement being put together.



For economic reforms to succeed, the new Zimbabwe must be a place of coordination, collaboration and compromise whereby the rule of law is sacrosanct. This victory for compromise in the form of a complex agreement between the Zimbabwean government and the white farmers are a sign of this spirit and of better times ahead.



Prof. Mthuli Ncube is the Minister of Finance for the Republic for Zimbabwe

Finmin Ncube on who will fund Zim’s $3.5bn compensation to white farmers

COMMENT: The latest in the land story in Zimbabwe is a victory for compromise – so says the finance minister.

LONDON (Reuters) &#8211; Amazon (<a href="https://www.reuters.com/companies/AMZN.O">AMZN.O</a>) brought a little cheer to Britain’s troubled labour market on Thursday, saying it will create a further 7,000 permanent jobs in 2020, taking total new hires this year to 10,000.FILE PHOTO: The logo of Amazon is pictured inside the company&#8217;s office in Bengaluru, India, April 20, 2018. REUTERS/Abhishek N. Chinnappa/File Photo



Last month the number of people in work in Britain suffered the biggest drop since 2009 and the coronavirus is expected to take a much heavier toll on unemployment when the government winds down its huge job-protection scheme.



The one bright spot however has come from online retail and logistics as orders surged during lockdown. Amazon’s latest recruitment will take its total UK workforce to over 40,000 by the end of the year.



The U.S. internet giant said the 7,000 new roles will be for warehouse workers, as well as engineers, HR and IT professionals and health and safety and finance specialists.



The jobs will be in over 50 sites, including two new distribution centres in the north east and central England and at corporate offices.



It said it needed more staff to meet growing customer demand for its services and to enable small and medium sized enterprises selling on Amazon to scale their businesses.



Amazon has also started recruiting for more than 20,000 seasonal positions across the UK for the festive period.



Last month the Confederation of British Industry said British retailers had cut the most jobs since the depths of the financial crisis and expected the pace of losses to accelerate.



Well-known British retailers Marks &amp; Spencer (<a href="https://www.reuters.com/companies/MKS.L">MKS.L</a>), John Lewis, Debenhams DEB.L, WH Smith (<a href="https://www.reuters.com/companies/SMWH.L">SMWH.L</a>) and Dixons Carphone (<a href="https://www.reuters.com/companies/DC.L">DC.L</a>) have all announced job cuts in recent weeks, reflecting the rapid shift in demand to online sales.



Tesco (<a href="https://www.reuters.com/companies/TSCO.L">TSCO.L</a>), Britain’s biggest supermarket, said it would create 16,000 permanent roles to meet the surge in home deliveries.

How Coronavirus Could Slow Down Amazon Deliveries

Amazon bucks UK labour market gloom with 7,000 new jobs

WASHINGTON (Reuters) &#8211; President Donald Trump on Tuesday said his administration would help U.S. airlines facing sharp downturns in passenger traffic as a result of the novel coronavirus pandemic, but gave no details.



“We’ll be helping the airlines. You have to help the airlines,” Trump told reporters before departing on a visit to Kenosha, Wisconsin. “Airlines are a tough business in good times.”



Airline shares jumped on Trump’s comments but then gave up some gains. American Airlines (<a href="https://www.reuters.com/companies/AAL.O">AAL.O</a>) was up 1.5%, while United Airlines (<a href="https://www.reuters.com/companies/UAL.O">UAL.O</a>) was up 0.5% in early afternoon trading.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1110" height="658" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/British_Airways_Comair_B737-236A_ZS-OKE_14235118085-1110x658.jpg" alt="" class="wp-image-380363" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/British_Airways_Comair_B737-236A_ZS-OKE_14235118085-1110x658.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/British_Airways_Comair_B737-236A_ZS-OKE_14235118085-300x178.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/British_Airways_Comair_B737-236A_ZS-OKE_14235118085-820x486.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/British_Airways_Comair_B737-236A_ZS-OKE_14235118085-768x455.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/British_Airways_Comair_B737-236A_ZS-OKE_14235118085-1536x910.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/British_Airways_Comair_B737-236A_ZS-OKE_14235118085-696x412.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/British_Airways_Comair_B737-236A_ZS-OKE_14235118085-1068x633.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/British_Airways_Comair_B737-236A_ZS-OKE_14235118085-600x356.jpg 600w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/British_Airways_Comair_B737-236A_ZS-OKE_14235118085.jpg 1600w" sizes="auto, (max-width: 1110px) 100vw, 1110px" /></figure>



White House Chief of Staff Mark Meadows last week said Trump was weighing executive action to avoid massive layoffs at airlines if Congress fails to agree on a fresh economic stimulus package.



U.S. passenger airlines are still collectively losing more than $5 billion a month as 30% of airplanes remain parked. Passenger travel demand remains down about 70% and, on average, planes are half-full.



Last week, American Airlines said its workforce would shrink by 40,000, including 19,000 involuntary cuts, in October unless the government extends aid for airline employee payrolls.



United said Thursday it will need to cut 2,850 pilot jobs between Oct. 1 and Nov. 30 if the government does not extend assistance.



Airlines received $25 billion in U.S. government stimulus funds in March meant to cover payrolls and protect jobs through September. Congress also approved another $25 billion in loans for airlines.



As bailout money runs out without a travel recovery in sight, airlines and unions have lobbied Washington for another $25 billion. However, talks have stalled as Congress has struggled to reach agreement on a broader coronavirus assistance package.



American said last month it would suspend flights to 15 small U.S. cities in October without more federal aid.

396×276(5)

Trump says he will help struggling U.S. airlines

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1110" height="740" src="https://www.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-1110x740.jpg" alt="" class="wp-image-380641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-1068x712.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-1920x1280.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/GettyImages-1214403320-600x400.jpg 600w" sizes="auto, (max-width: 1110px) 100vw, 1110px" /><figcaption>Stock charts on the background of skyscrapers. Financial system concept &#8211; stock photo</figcaption></figure>



We inherently believe that if we had a chance to change the world we would do something dramatically different. In reality, when people get into positions of power, they get bogged down with the mundane and eventually become conformists; it’s easier to adapt than to change. Having lived through five economic cycles over the last 30 years, I asked myself what I would do differently if I had control of the world at a time when the world economy is gutted by the pandemic and the World Health Organization has stated that the worst is yet to come. With these onerous terms of reference, one is compelled to think of extreme measures to provide relief to the dire and helpless situation that the majority of the people around the world find themselves in.



In any crisis what becomes most critical is the availability and flow of money within our economies particularly to the small and medium-sized enterprises (SME’s). It’s recognized that almost 70% of employment comes from the SME sector. However, in difficult times, the cash-tap dries up and money flows to this all-important sector dries up. Commercial banks are best known for the adage “offer an umbrella when there is no rain” and as entrepreneurs in the SME sector will validate this as banks ask for 100% cash collateral when things get tough.



That is risk mitigation 101. When unemployment is at 30% and when almost 70% of the global population is at risk, there is this select group of institutions that continue to do well. These are a majority of the listed companies and the financial services sector in general. I am quoting from my publishers note in June 2020:“Continuing to look at our magical numbers, global GDP is flirting around $100 trillion and total global debt is around $250 trillion (give or take a few trillion). The market capitalization of the 60 main exchanges in the world is around $70 trillion. In terms of profitability, just the S&amp;P 500 companies were projected to deliver approximately $1.5 trillion in profits in 2020, the global banking sector would deliver profits of $250 billion to $300 billion and the technology sector approximately $356 billion.



These numbers are larger than the GDPs of most countries. The numbers for Africa are not as high but there are thousands of businesses that are doing well and will continue to do so after the pandemic is over. It’s therefore, clear that while we have problems from time to time, we also have the resources to fix them; many times over. Hence, it’s time for us to go back to the drawing board and start from zero by redefining our purpose, the difference we need to make and the legacy we will leave”.



Let’s also put two other terms of reference on the table relating to banks. Banks closures and failures on account of bad debt write-offs, non-performing assets or over leveraged balance sheets seldom come from bad loans to the SME sector or to farmers in the agricultural sector.



History is a witness (as Google can validate) that the majority of causes come from lending to large corporates, poor governance and through fraud. Secondly, even in crisis, as central banks reduce interbank rates, commercial banks seldom pass this on to the SME sector; beneficiaries are once again people who can afford the higher interest rates.



Rather than rearticulate I want to quote from the same note in June: If we are to be truly reincarnated, the script must be rewritten and inequality must be the first value for rehabilitation. In reality, even though resources are abundant, the gaps have continued to widen and the levels of poverty have increased. This is largely because of how we have developed the economic value chain;people that make the most money are the financial engineers who are trading stocks and not those sweating in the field manufacturing products and delivering services.



The cocoa bean, sugar or chicken farmer make 6% of the amount that the retailer makes selling the finished products, who in turn makes 50% less than the equity trader, who makes the most money trading on the stock. Anna, the tea lady in our office in Johannesburg, was charged an annual interest rate of 26% by one of the top banks to pay the college fees for her only son; no recourse. This is exploitation and needs to change through radical reforms of our entire banking system and the capital markets to harbor on making them very efficient but not for profit; the profit needs to be reinvested at the grassroots level. We need more farmers ploughing the fields, as at the end of the day, we cannot eat “paper stock”. Let’s agree that governments cannot be the answer to all the problems. Governments can provide stimulus, change policies and even print money (if that is indeed a solution) but at the end of the day the real cash that is available is in the financial system to include capital markets. Even when the entire world economy has come to a standstill, the people who continue to make profits are those that are feeding off the financial services trough.



My over simplified list of actions, as radical as they may sound are mild in contrast to what is needed today. I would increase the capital of all Multilaterals and Development Finance Institutions (DFI’s) by prorata contributions from the wealthy nations, but ensure that in turn they (including the World Bank and IMF) reduce lending rates significantly and waive interest for 3 years on all national debt for developing countries.



Secondly to shut all capital markets and exchanges for 2 years, stop all exits from private investments for 2 years (rather invest in venture and growth capital), no dividends are paid by listed companies for 2 years, ensure all cash raised in funds goes into growth capital, interest cap on loans to individuals at the lowest income bracket, and 100% of profits from banks, insurance, credit card, listed companies, investment banks, audit firms, consultancies, and property development companies is channeled back to government coffers to support the core sector industries particularly agriculture, healthcare, SME’s and infrastructure (including low-cost housing).



To plug some loopholes no increases in salaries or any bonuses or incentives provided to any employee (other than the lowest income groups) for 2 years. It may put a small percentage of people through minor but endurable inconvenience but 70% of the world will see some measure of improvement. The Greek physician Hippocrates, is known to have said &#8220;For extreme diseases, extreme methods of cure, as to restriction, are most suitable.&#8221; This when translated by many people in history has led to a common phrase “desperate times call for desperate measures”. Well, the time for procrastination is over and it is time to act. If I had the reins of the world, I most certainly would take draconian measures for the greater good.

Stock charts on the background of skyscrapers. Financial system concept

OPINION: Desperate times call for desperate measures to save our economies

By Kudzai Mutisi The government of Zimbabwe issued a statement on 31 August 2020 addressing several issues pertaining to the land reform program. The statement presented the government’s position on the compensation of indigenous (black) Zimbabweans who lost their land during the land reform program and the compensation of former farm owners whose land was covered by Bilateral Investment Protection and Promotion Agreements (BIPPAs).



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/Belarus-tractors-for-Zimbabwe.png" alt="" class="wp-image-379493" width="692" height="925" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/Belarus-tractors-for-Zimbabwe.png 477w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/Belarus-tractors-for-Zimbabwe-225x300.png 225w" sizes="auto, (max-width: 692px) 100vw, 692px" /><figcaption>Tractors from Belarus arrive in Zimbabwe as part of a training programme for farmers. </figcaption></figure>



ocals and foreigners seem confused by the government’s statement particularly the issue of returning land to certain former farm owners as compensation. Many have misconstrued this as the reversal of the land reform program by President Mnangagwa’s government. The compensation of former farm owners is covered in section 295 of the constitution of Zimbabwe. There are three categories of farm owners eligible for compensation in different forms. Section 295 (1) provides that indigenous Zimbabweans who lost their land must be compensated for the land and developments thereon. Section 295 (2) stipulates that those whose land was covered by BIPPAs and BITs are entitled to compensation for the land and developments thereon. Section 295 (3) compels the government to compensate those not covered in subsection 1 and 2 for improvements on the land and nothing else.



 In line with the constitution of Zimbabwe, President Mnangagwa’s government has put measures to provide compensation to all three categories of former farm owners. The recent statement provides options for the compensation of farmers under subsection 1 or 2 of section 295. In fact, these former farm owners were not included in the Global Compensation Deed signed recently. It is only these two categories of former farmer owners who have the option to get back their land or to be allocated alternative land elsewhere.



 The farmers that fall under section 295 (3) will be compensated only for improvements on their farms in accordance with the Global Compensation Deed recently signed by the government and former white farmers. These former white farmers owned more than 98 percent of the land expropriated by the government during the land reform program. They have no option of getting back that land. It is worth noting that the number of farms covered by BIPPAs and BITs are fewer than 37.



Some of the farmers in this category already received compensation for their land during the Mugabe era. According to the recent government statement, the compensation of these farmers will be governed by Statutory Instrument 62 of 2020. President Mnangagwa is not reversing the land reform program, he is simply implementing the country’s constitution. By committing to the full compensation of farmers covered by BIPPAs and BITs, the government of Zimbabwe is respecting and restoring property rights. Moreover, the new black farmers currently occupying the land covered by BIPPAs will not be left landless, they will be resettled elsewhere by the government. This is a positive move that should be applauded by locals and foreigners alike.



 The government’s statement also emphasised that illegal occupation of productive farms will not be tolerated anymore. In addition, the government will not downsize productive farms. This is a complete departure from the past where the government allowed the disruption of production on white owned farms.



 The criticism being levelled against President Mnangagwa’s government is driven by sheer ignorance of the country’s constitution and political propaganda. If anything, the recent moves by the government seek to correct the mistakes made during the land reform program and to bring sanity to the agricultural sector. There is no reversal of Zimbabwe’s land reform program. In fact, the government is effectively finalising the land reform program.

zimuuu

OPINION:There is no reversal of Zimbabwe’s land reform program

CHICAGO (Reuters) &#8211; United Airlines (<a href="https://www.reuters.com/companies/UAL.O">UAL.O</a>) said on Sunday it is permanently eliminating change fees on tickets for U.S. travel effective immediately, the latest effort by a U.S. airline to try to stimulate bookings hit by the coronavirus pandemic.



Chicago-based United is among the major U.S. airlines that began implementing temporary waivers of change fees this year to give passengers more flexibility with their travel plans given the uncertainty surrounding the pandemic.



Now it is making the policy permanent for all standard Economy and Premium cabin tickets and also applying it to any ticket already booked through the end of the year. The standard change fee &#8211; charged to passengers who change their tickets &#8211; for domestic flights was $200.



In a video message to customers, Chief Executive Scott Kirby said getting rid of fees is often a top request from passengers.



The move matches Southwest Airlines’ (<a href="https://www.reuters.com/companies/LUV.N">LUV.N</a>) long-standing policy of not charging fees for ticket changes.



Rivals American Airlines (<a href="https://www.reuters.com/companies/AAL.O">AAL.O</a>) and Delta Air Lines (<a href="https://www.reuters.com/companies/DAL.N">DAL.N</a>) traditionally do charge for changes. Along with United, they were booking record revenues before the pandemic crushed demand, thanks largely to fees for things like checking luggage or choosing a seat.



In another change, beginning Jan. 1 United will allow customers to list for stand-by for free on a different flight on the same day of travel with the same departure and arrival cities if a seat is available.



Kirby called the moves a departure from decisions airlines had made in the past to survive difficult times, sometimes at the expense of customer service, saying United “won’t be following that same playbook as we come out of this crisis.”



Airlines are burning through millions of dollars daily because of the pandemic, but agree that restoring customer confidence and providing travel flexibility will be key to encouraging people to start traveling again and pave the path back to profitability

How Airlines Park Thousands Of Planes

United Airlines bids farewell to change fees in push for bookings

NEW YORK (Reuters) &#8211; At the height of the coronavirus pandemic last spring, the heads of U.S. banks including Morgan Stanley, Bank of America Corp and others pledged not to cut any jobs in 2020 because it was the wrong thing to do.



However, as executives prepare for an extended recession and loan losses that come with it, layoffs are back on the table, said consultants, industry insiders and compensation analysts.



Compared with April projections, bank economists and executives expect the U.S. economy to take longer to recover, with high unemployment into 2021 and interest rates staying near zero for the foreseeable future.



On top of that, working from home has shown some managers that they need fewer employees to do the same amount of work.



“No question, layoffs (will) come across the board for all the banks,” said Barry Schwartz, chief investment officer at Toronto-based Baskin Wealth Management, which invests in JPMorgan Chase and other large Canadian banks.



Banks have to cut costs because of expected credit issues, as well as low interest rates and regulatory pressure to trim dividends, he said.



Bank staff could shrink by an average of 5-10%, mainly at mid- and lower levels in technology, human resources and finance departments, according to Alan Johnson, head of the compensation consultancy Johnson Associates, Inc.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/071-1-576x1024.jpg" alt="" class="wp-image-378628" width="704" height="1252" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/071-1-576x1024.jpg 576w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/071-1-169x300.jpg 169w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/071-1-450x800.jpg 450w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/071-1-768x1365.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/071-1-864x1536.jpg 864w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/071-1-scaled.jpg 1152w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/071-1-696x1237.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/071-1-1068x1899.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/071-1-1920x3413.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/071-1-600x1067.jpg 600w" sizes="auto, (max-width: 704px) 100vw, 704px" /></figure>



JPMorgan Chase &amp; Co already cut around 100 jobs in mid-July, according to comments on social media. People who said they worked in three divisions – the community and consumer bank, the commercial bank and the corporate and investment bank – said they were let go. JPMorgan representatives declined to comment.



Wells Fargo &amp; Co resumed cutting jobs in August after putting layoffs on hold in March. The affected staff have so far been in technology and retail banking, and management is planning thousands more layoffs this year and next, sources said.



“We didn’t see a lot of restructuring or layoffs with the banks (earlier in the pandemic). We’re starting to see it now,” said Dennis Baden, partner-in-charge at executive search firm Heidrick &amp; Struggles.



“Things will get a little bit worse &#8230; and we might see an increase in restructuring.”



Among global banks, Standard Chartered PLC and HSBC Holdings PLC have let go of several hundred employees this year. Standard Chartered plans to lay off a few hundred more this year and early next year, according to bank sources.



A Standard Chartered spokesman said the job cuts are not due to the pandemic, but are part of a more than 4-year-old strategic plan. Any Standard Chartered employees let go in 2020 will be paid their salary for the rest of the year and will receive severance pay, according to a bank statement.



HSBC announced this month it was restarting a plan to cut 35,000 jobs.



The Bank of Nova Scotia also let go of some U.S. investment bank staff, according to several sources familiar with the development. The bank declined to comment.



Reuters reported in May that large Wall Street banks were widely expected to cut budgets, including areas in technology and operations, like third-party consultants, business analytics, process management and call centers.



<h3 class="wp-block-heading">FROM RECORD REVENUES TO JOB CUTS</h3>



Wall Street’s trading and investment banking businesses generated huge revenue from the market volatility in March and April. But CEOs and analysts have since cautioned that capital-markets revenue will trend downwards for the rest of the year, despite market indexes posting record highs recently.



Analysts still expect banks to report decent profits in coming quarters, and some may continue to invest in core businesses in an opportunistic way. For instance, JPMorgan Chase opened 13 new branches in July, after having closed 22 branches in June on a net basis, according to S&amp;P Global.



Still, banks are planning staff cuts because costs are expected to be high relative to revenue, and management teams have found that remote work setups function better than expected, said Johnson.



“Everyone has been surprised by how much more efficient you can be,” he said. “Later this year or early next year, (managers will) look around and say we just have many more people than we need.”

Banks eye layoffs as short-term crisis ends, long-term costs emerge

LAGOS (Reuters) &#8211; Angola plans to join the Extractive Industries Transparency Initiative (EITI), an international effort to fight corruption in revenues from oil, gas and mineral extraction.



Tete Antonio, Angola’s minister of foreign affairs, announced the move on Twitter late on Friday and said Angola “has clearly demonstrated its commitment to promote the open and accountable management of its natural resources for the benefit of its people.”



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EITI, formed in 2003, has more than 50 implementing countries.



Angola’s President Joao Lourenco has embarked on an anti-corruption drive since taking power from Jose Eduardo dos Santos, who stepped down in 2017 after a near four-decade rule.



Earlier this month, a court in Luanda sentenced dos Santos’s son to five years in prison over a $500 million corruption case.



Africa’s second-largest oil exporter is also working to stem a steady decline in oil output due to a lack of investment.

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